Tenaris
and Sidor sign agreement to purchase Venezuelan HBI plant
Posted: 28 April 2004
Tenaris S.A., together with Sidor, a Venezuelan steel producer
in which it has an indirect investment, has signed an agreement
with Posven, a Venezuelan company in which Posco of Korea has a
60 per cent shareholding, for the sale and purchase of its assets
– principally an industrial facility for the production of
pre-reduced hot briquetted iron, or HBI, located in Ciudad Guayana,
Venezuela – for a price of US$120 million.
The acquisition, that will be effected by a newly-formed company,
of which Tenaris will hold 55 per cent and Sidor 45 per cent, remains
subject to a number of closing conditions including the transfer
of operating contracts on satisfactory terms.
The facility, which has a nominal annual design capacity of 1.5
million tons of HBI and was constructed by Raytheon Engineers &
Constructors using technology developed by Hylsamex, a Mexican steel
producer, has been shut down since 2001 shortly after commencing
operations.
This investment, which complements a previous investment in the
Comsigua HBI plant also located in Ciudad Guayana, Venezuela, will
allow Tenaris to secure a further low-cost source of high quality
ferrous raw material. Tenaris also operates a pre-reduced iron,
or DRI, facility in Campana, Argentina.
Tenaris is a leading global manufacturer of seamless steel pipe
products and provider of pipe handling, stocking and distribution
services to the oil and gas, energy and mechanical industries and
a leading regional supplier of welded steel pipes for gas pipelines
in South America. Domiciled in Luxembourg, it has pipe manufacturing
facilities in Argentina, Brazil, Canada, Italy, Japan, Mexico and
Venezuela and a network of customer service centers present in over
20 countries worldwide.
For more information see http://www.tenaris.com
Posted by Richard Price,
Editor Pipeline Magazine
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